'KLIA East @ Labu’

[jani 0]

He will never do that, highly doubt it. He will probably lose the support of millions of Malaysians.

[KK Lee 5]

if Uncle Tony relocates AK to another country......then we know he is truly a NON-RAKYAT man....whatever he says

 

Given constraint at KUL, there is nothing wrong for or to stop TF to expand FD, QZ or even Air Asia Singapore instead of AK.

 

 

[mohd sukri abd hamid 0]

I agree with you. A solution maybe the MAHB gives a land to AirAsia to build and manage the LCCT terminal (preferably the KLIA-WEST), but then the runway/control tower and other infrastructures are shared. The LCCT should not be AirAsia exclusive, but open to any other LCCs to allow competition. So while KLIA won't lose its no of passengers, AirAsia would not lose efficiency as they build it the way they want it. So it's a win-win solution. The only thing is whether MAHB would allow an operation by other than them/AirAsia willing to work with MAHB on this. We shall see as the event unfold.

 

I really hope the new LCCT not being built by MAHB because they are not doing very good at it (ie. current LCCT).

[/quot

 

 

current LCCT now only sementara je...if MAHB building up permenant terminal will be great..they will building same main terminal...

[BC Tam 2]

current LCCT now only sementara je...if MAHB building up permenant terminal will be great..they will building same main terminal...

And therein lies the fundamental issue - if another "same main terminal" is built, it goes nowhere in addressing any LCC's needs (if cost considerations are taken into account that is)

[KK Lee 5]

Q&A: Fernandes pours out his frustrations

Jan 29, 09 12:42pm

AirAsia chief executive Tony Fernandes let loose on his frustrating battles between his budget airline and government-linked agencies in this second of a two-part interview.

 

 

Malaysiakini: With the new KLIA East @ Labu you are racing against time. Though the cabinet has given the green light, it's not yet a done deal. Are you worried?

 

Tony Fernandes: Yes, I am worried about it. This whole thing has been done with a lot of time pressure. In 2010, we forecast we'll be four million passengers short in terms of terminal capacity and about 17 planes short of parking. Right now, we're a million passengers short in this terminal, and it's a nightmare. And four million is not even worth thinking about. I think it will come to a head, one way or another.

 

We're a point-to-point airline. We don't have night stops. All our Airbus A320 aircraft come back at night. The only planes that are flying around are the long-haul ones, the 25 Airbus A330s. They won't be there all at the same time. But the A320s will come back every night and need to be parked. We'll have some planes in Johor Bahru and we'll have some planes in Kota Kinabalu overnight. And hopefully we'll have a hub in Penang.

 

And the second part is charges. I need low charges to stimulate someone from China who never thought of going to Penang. Why have we developed Manado (North Sulawesi in Indonesia) and all these other weird and wonderful destinations? Because there's low fares. So people say 'come on let's try, I never tried Manado, let's go - RM50'.

 

In Kota Kinabalu, it's the other way around. They built us a low-cost terminal and now they want us to move out of there because they say the other terminal is empty. We didn't ask them to go build a massive terminal in Kota Kinabalu so it's not our problem. Why should we move?

 

Ask Malaysia Airlines (MAS) to do more flights. You're the airport authority. Go and attract lots of airlines. But if you charge everyone the same, if you don't do any marketing, if you don't work with the airlines, then who is going to come?

 

In your experience with government-linked companies, with all the monopolies that they have, is it stifling private enterprise?

 

I don't think it's fair. Look at where we are (Low Cost Carrier Terminal in Sepang)! Go ask the taxi drivers - it's RM35 to get to the main terminal (in Kuala Lumpur International Airport). There is no train here. You try taking the bus between the two terminals.

 

Now suddenly, everyone's concerned about connectivity. There was none here. We were like ostracised people thrown here and we've fended for ourselves.

 

If MAHB (airport operator Malaysian Airports Holdings Berhad) was so concerned about connectivity, why is there no airside transport? That is, you come off a flight from Sydney, and you don't want to go through immigration, your bag should be automatically transferred to this terminal and there should be a bus on the airside to take you to this terminal without having to go through passport control. But now you have to pay airport tax twice if you transfer. No one has even talked about that.

 

I was like a broken record saying, 'Train. Train. Train. Train. Train.' No one listened, so I said, 'Screw it'. We'll build our own long-haul airline - AirAsia X. MAS didn't want to work with us. MAHB didn't do anything for us. I could be in Timbuktu, and we'll survive.

 

Can I add one more point on this connectivity issue? Why is (MAS’) Firefly allowed to be in Subang? And don't tell me it's a turbo-prop. Turbo-props move human beings. If Khazanah is so worried about hubbing and connectivity, why aren't those passengers here? What's the connectivity between Subang and KLIA? There is none.

 

You’ve been fighting a running battle with MAHB. What are your major gripes?

 

My major gripe is we're overcharged. It's like saying my budget Tune Hotel should be charged like Mandarin Oriental. It's different. We don't have lifts here. We don't have walkalators here. My passengers have to walk all the way to Phuket to get to the plane.

 

Passenger comfort here is seven meters per person. (The) main terminal (in KLIA) is 65 meters. This is a fact told by MAHB. MAS advertises that fact. You have a nice terminal. You don't get wet. If it rains really hard here, we can't board!

 

We accepted that because we said, 'give us low charges' and we will suffer. We don't mind because our passengers have never flown before. Give them low fares, they don't mind walking.

 

There's been lack of foresight and planning. We asked for this terminal's extension to be built by October 2007. Not done, because they requested money from the government, and the costs were high and the government kept saying it's too high, they have to bring it down. As of today, it's still not ready 18 months later.

 

And we're being overcharged. (The) passenger service charge, initially it was the same as the main terminal. How can you justify that? I fought really hard, and it came down to RM25. I still think it's too high for what we get.

 

What was the original charge?

 

RM51. When I go to develop routes like (between) Langkawi and Bangkok - I said, let's try, may be Thais are fed up with going only to Phuket, it doesn't cost you anything. If my plane comes down, there's no incremental costs because your lights are turned on, your security guards are all there... they said no. I still did it, though I failed. I needed low fares.

 

So who loses? The country loses. MAHB loses. That's the kind of frustration we've had all these years. We have developed 36 new routes in this airport. You want to go back to the hub principle? What hub? What airlines are available? You compare KLIA with Changi and Bangkok - there are so few airlines coming here.

 

In Australia, apart from Singapore Airlines, we're voted as the most popular, most well-known, airline. We're above MAS, Cathay, Emirates, Thai. And we've only been going there for a year. We spend a lot of money promoting Malaysia.

 

If I live in a rented house, the landlord is good, the rate is cheap, why would I want to move out? The last thing I want to do is build an airport. It's desperation that we've reached this situation. I didn't want to start a long-haul low-cost carrier either.

 

Isn't building a new airport a very costly way of solving this problem?

 

It's like independence. You treat a country badly, they'll want to break away and secede. After three years with MAHB, now allow us to be a Republic of KLIA East. We control our lives. No more bitching. ‘You think you're so good at running an airport, you go run it yourself.’ You think I really want to do it?

 

You know that there will be people who will be fighting against this act of secession?

 

Of course. I dare say that if Khazanah (government-linked company which owns MAHB and MAS) was in its present structure when I started AirAsia, we would have been dead. Very direct, but very true.

 

Khazanah may have said, as they're saying right now, there's no need for AirAsia. MAS can do a low-cost carrier. Would the people have benefitted?

 

What Khazanah and MAHB have been saying is that you should be following the National Airport Masterplan (which included the plan for a new LCCT terminal). AirAsia was consulted, they say, the plan was recently reviewed.

 

So why are you suddenly changing? Haven't you been consulted?

 

As of last week, we've just been given diagrams of what their terminal would look like. If you've looked at the terminal that they've come up with, it's a three-level airport. We would never ever go with something like this.

 

I disagree on the consultation. There is generally a one-way discussion with MAHB. Except with the (existing) LCCT, there was a lot of consultation - there was a good partnership - but with this new one, we don't know anything about it. We disagree with the area. There is no infrastructure in the area.

 

Only when we started with KLIA East @ Labu did this National Airport Plan suddenly come out. What is the cost of this? Have you heard any number on the cost.

 

I've been transparent: RM1.6 billion. Has MAHB come up with a figure for their new low cost carrier terminal? Who's going to pay for it? Ultimately, the airlines will have to pay for it. That's why we are objecting.

 

The National Airport Plan that we saw will be a disaster. Has the Express Rail Link (ERL) been built? Has it been agreed to? I spoke to ERL, and they don't know.

 

So, what consultation? I think you should at least say - this is what it's going to cost, this is what it's going to look like, what are your views? None. Their consultant, we heard, said that our passenger forecast is never going to happen. What do you mean? We're the ones that bought the planes. We've beaten the forecast every time.

 

I have letters to show you that when they built this terminal, we said it's too small. MAHB has said that we said we wanted 10 million (passengers). But I can show you the letter that says it's too small. So I don't agree with that statement for one bit. They haven't consulted us. Partnership is about consultation. Why should we be leaving if we're happy? Why? Why should we want to leave?

 

I mean this is the last thing we want to do. Yes, there will be detractors. There have been detractors from AirAsia from Day One. I've had to fight to get Kuala Lumpur-Singapore (route). Cars can go there. Buses can go there. But AirAsia cannot. Explain that to me.

 

An airport is critical to an airline for growth, especially if we have global competition. Tiger Airways gets everything it wants from (the) Singapore (government) straight away.

 

What does it take for AirAsia to continue their operations in KLIA?

 

What would make us stay? Low charges and an airport we believe can be done at the right time, in time.

 

We have the worst financial crisis in the history of mankind so do you think I really want to go out and take on another challenge? I think we will die if we don't resolve it. There won't be an AirAsia. It's that serious. So what do you do? You take things into your own hands and you try and do something.

 

It's when I discovered that the other terminal was scrapped and they talked about this being ready in 2014, I panicked. I literally panicked. I was on a flight coming back from Hyderabad. I went round looking all over the place for land.

 

We looked here (at KLIA), this was our first port of call. We talked to the government about can we build something here? We couldn't really find anything that we thought could be efficient. It was just swamp land and it would take one year to fill it up and RM400 million.

 

Then suddenly Labu came along. So we thought: great, the government can't object to that. It's right by KLIA so there's connectivity. We'll privately fund everything. It was wonderful, Labu as we were saying.

 

You can open up so much tourism because of Malayan Railways (KTM). We can get people up to Gemas now and up to Perak. People from Seremban can come and not pay RM35 on the ERL.

 

No low-cost terminal has been built throughout the history of aviation. They have always been adapted. So we have a full, complete, wonderful airport plan. We've got a whole new system. It'll be like a shopping arcade. Less check-in desks, etc. Easier passenger flows.

 

If we have a tropical kind of airport with trees, it would be cooler. We used solar technology a lot. And lots of people want to use it as a showcase. We can get a lot of the technology for free. From General Electric Corp and all these guys, solar panel guys want to do it. They know 20 million people will fly through this terminal.

 

We're going to have a major bus transport network. So that when you touch down, if you want to go to Malacca, bus there. You want to go to Kuantan, bus there. You want to go to Taman Negara, bus there. You need good ground infrastructure.

 

I wanted to have a free taxi system - not coupons - so that anyone who comes in, any taxi can come in. They don't have coupons anywhere else in the world. If you want to come in - it will be much cheaper - you can come in and pick someone up, just join the queue. But you got to be in the queue, to be fair to everyone. Great bus, great train, it will spur tourism.

 

And then the Vision Valley (a project to be developed by Sime Darby Bhd next to Labu), to me is fantastic. I've already bought in because education is a passion for me. My dream is that we have an education city that has Chinese universities, European universities, Indian universities and Malaysia becomes a centre because of our language capabilities, which is another topic for another day.

 

I believe we should push our brand that we're multicultural and I think every kid should learn Malay, Chinese and Indian. That was my dream and having a low-cost carrier you can fly and it becomes much easier.

 

What do I have in KLIA? But if I had the Vision Valley there and some control of our own to make it, there would be an extra reason to come to Kuala Lumpur.

 

Look at Singapore. They have cinemas in their airport, swimming pool, golf club next door. Taxi service is impeccable. You come in, the taxi driver is standing there with the boot open. I can do that. I can do Singapore. We have.

 

Tiger Air has eight planes, we have 75. Tiger Air has Temasek, Singapore Airlines, TPG - the biggest private equity house - and the Ryan family. You cannot get better shareholders than that. Yet with all the obstacles put in front of us here they have only got eight planes and we have 75.

 

We want to be charged fairly. We want the owners of MAHB to be objective - not to wear two hats, an MAS hat and an MAHB hat. Objective to what AirAsia wants and will disaffect MAS.

 

Talking about privatising infrastructure, couldn't AirAsia abuse its monopoly or go bust leaving Malaysians with another white elephant airport?

 

That's a fair concern, but the question is: is there a choice? (MAHB) is a monopoly. Ultimately, if I'm overcharging at KLIA East @ Labu, who the hell is going to come? There is a choice. There are two choices. There is Firefly and there is MAS here.

 

What I'm saying is, as opposed to toll roads, etc, people have a choice. But if ultimately we try to rip off everyone, people can walk across to KLIA.

 

In terms of bailout, we've seen a lot of that. The entire banking industry in America (was bailed out) and America is virtually a socialist economy now. So it is all about if you have faith in a company and its ability to manage itself. I can't guarantee you that this is the case. But I'll just let our track record speak for itself. MAS has been bailed out three times.

 

And when you have a terminal that we believe we can build at less than RM1.6 billion because steel prices now have come down with our own runway and we think about the ancillary income.

 

We got a hotel right across the road. I forgot, there is another attraction here (LCCT), a hotel. (laughs). Hey, I own that hotel yet I'm prepared to move out of here. So my CEO of hotels is like: 'what am I going to do?' I don't know. You got to be creative, right? (laughs)

 

We've been able to make an airport hotel work at RM30 a night. Where in the world could you ever do that? Tune Hotel (in Kuala Lumpur), which is a former hospital, it's full every night. They say they got ghosts in there, so free entertainment also! (laughs) What's wrong with that?

 

Let’s talk about the AirAsia's balance sheet. You’ve suffered your first losses (RM465.5 million in the third quarter) due to (global oil) hedging.

 

We’re looking very good for the fourth quarter and I think all that we did is realise losses that every airline has been sitting on. I think we were smart, to be honest. When we hedged at US$77 it looked fantastic. They were all talking about oil being at US$200 (a barrel).

 

So when it all started coming down, I said to (AirAsia director) Kamarudin (Meranun), let’s get out of this. Otherwise, we could have a real problem coming if oil goes down to US$40. That was my target. He said no, no way. I just said, get out of it. Take the pain.

 

So we paid US$21 odd million to get out of one trade and another US$21 million to get out of another trade. Other airlines are still paying oil at $95.

 

So I just recognised the losses, which is a lot less then if I continue to pay for oil at US$77. I’d have a huge mark-to-market loss. Cathay Pacific had mark-to-market loss of US$1 billion. Southwest Airlines, one of the most successful airlines, has hedging losses of US$700 million. So we took the hit. But we’re clean now.

 

It’s a crazy market out there. But we took a little short-term pain. We have a little more pain in the fourth quarter. Then we’re clean. We’re transparent. Many companies here don’t have mark-to-market. You don’t have to report mark-to-market. So there are some companies here who have huge mark-to-market losses.

 

According to Malaysian accounting standards, there is no need to report mark-to-market. So if every airline and other company reported mark-to-market, they would be sitting on a massive loss. But we just took a hit, cleaned it up and we’re being transparent about it.

 

http://www.malaysiakini.com/news/97233

 

 

[reyneo 0]

It's like independence. You treat a country badly, they'll want to break away and secede. After three years with MAHB, now allow us to be a Republic of KLIA East. We control our lives. No more bitching. ‘You think you're so good at running an airport, you go run it yourself.’ You think I really want to do it?

TF is a VERY VERY good publicist!

[Mohd. Helmi 0]

if Uncle Tony relocates AK to another country......then we know he is truly a NON-RAKYAT man....whatever he says

 

And good for him if he does relocate, he's a business man, not a government, his priority is to his shareholders and employees not the rakyat. The rakyat is better off if he and his companies are better off.

 

Look at it this way, the mak cik who sells you pisang goreng, sells it to you NOT because she cares that you the "rakyat" are better off being able to enjoy her nice fried bananas, but because you're giving her an income, giving her prosperity. Same thing with Dato' Tony on a larger scale, He couldn't give a rats ass about you the rakyat, but it's in his interests that your happy buying his products and want his products, like the mak cik, the exchange is when we give them money, they give us a product. In the end we all benefit, our economy grows.

 

If MAS behaved this way from day 1, like a mak cik determined in selling pisang goreng, rather than a mak cik not caring or serious about selling bananas with all the retarded mismanagement (this mak cik in the pisang goreng world would starve to death), MH would be a world champ like SQ, instead of pretending to be one.

 

If TF does relocate AK to another country, focuses on FD for example, thats good on him! because that's in his interests, if that's the only way he can make his business grow. Business acumen is like talent, it does not discriminate, it'll go to where it can thrive and be successful. Malaysia cannot strangle its talented sons and daughters, when it does, they seek better opportunities abroad at the expense of the country.

 

 

Just to add my opinion on KLIA EAST.

 

I just wished Dato Tony could just be honest with all of us, the rakyat. None of this Rakyat terminal nonsense and sugar coating it, KLIA EAST @ LABU. Dato, if you're reading this... seriously... the rakyat terminal??? stop the spin please. Also, it's another airport and not part of KLIA like the current LCCT, so just be honest with us, level with us, call it for what it is... you want Labu international airport, I'm inclined to believe us Malaysians are quite a practical bunch, we can see the need if there is one, if your straight and honest with us.

 

That said, there are some relevant points, if MAHB was really serious about building a permanent structure, it would have been built by now. I understand AK's been stonewalled by MAHB, upper echelons of Malaysian society look down on AK, MH folks look down on AK, no wonder we're still waiting for a permanent LCCT. It just shows MAHB's snobbery against low cost travel, rather than trying to develop KLIA conducive for low cost travel, I bet the idea of KLIA being an LCC hub disgusts people.

 

For any hub to succeed a prerequisite is to have strong home carriers, SIN has SQ, FRA has LH, DXB has EK, LHR has BA, CDG has AF. MH is only recovering, if MH is unable to compete globally we shouldn't stop AK from trying, so in my opinion, AK should go with their pumpkin plans.

 

 

[Radzi 2]

If theywant to, a new terminal can be build to the west of the current MTB. Then a new parallel runway can be constructed if needed. The ERL can be further extended thru the MTB to the new LCCT. Access thru the normal way, then before the Bunga Raya building turn right for the LCCT i.s.o left for the MTB. The land already owned by MAHB / govt so no need for land acquisition. I don't see any swampy land here.

 

 

However:

1. Building a new airport will make a lot of money for the construction. This is for the benefit of the politicians and cronies. This is a way to transfer money from Sime Darby to their pockets.

 

2. TF prefer to be far away from other airlines. This is for the captive markets; someone landing at Labu will be unlikely to travel to KLIA for transfer. Heck, even transfer from curent LCCT to MTB is difficult enough. Same case as in BKI, few people will want to transfer from T2 to T1 as the distance is quite far away.Someone coming from KBR to SIN for example, if he lands in Labu unlikely he will travel to KUL for the transfer.

 

 

Just my theory and thought.

 

 

[BC Tam 2]

I didn't want to start a long-haul low-cost carrier either

Oh come now, that would be like diluting the transparency angle somewhat no ?

[Izanee 0]

Radzi..completely agree with you. Tony wants it and he knows he can get it...lots of greedy people waiting to get their slimy hands on the dough.

 

If the government is really serious about making KLIA a hub.....they only have to look south to see what Singapore has done.

Its not rocket science, its not brain surgery.

 

FFS

[KK Lee 5]

 

AirAsia braces itself for backtrack on new airport

 

KUALA LUMPUR, Jan 30 — The government is set to backtrack on its decision to allow upstart budget airline AirAsia to build its own airport, raising serious questions over government policymaking.

 

Read more at

http://www.themalaysianinsider.com/index.p...-on-new-airport

 

 

Another flip flop by the gomen

 

 

 

[Phil M. 0]

Reading in between the lines i sence tonys frustrationlah.So much potential and yet its not happening fast enough!Even down to the no brainers such as at Singapore. They have cinemas in their airport, swimming pool, golf club next door. Taxi service is impeccable. You come in, the taxi driver is standing there with the boot open. I can do that. I can do Singapore. We have.Look

 

 

. I don't see any swampy land here.

 

[From that height even on the ground level u cant see it.If i recalled correctly when the main terminal building was being build. laying the foundation was such a chellenge because

the whole terminal site was resting on a"sungai zaman purba" Lots of top soil need to be removed!!

[BC Tam 2]

Am I the only one who has not come across any mention whatsoever on suitability of soil condition and/or topology at proposed Labu site ?

All we've heard is swampiness at KLIA, nothing on the nearby areas

This should be something right up Uncle Norman's avenue no ?

Edited January 30, 2009 by BC Tam

[Phil M. 0]

Am I the only one who has not come across any mention whatsoever on suitability of soil condition and/or topology at proposed Labu site ?

All we've heard is swampiness at KLIA, nothing on the nearby areas

This should be something right up Uncle Norman's avenue no ?

 

True enough!!Despite of the soil condition MTB is there!!!I really dont see the soil condition being a problem no matter if its labu or anywhere in the perimeter of KLIA for future expansion plans!!!Remember Kansai!Remember Macau! better still emm changi 3 terminals being built on reclaimed land they already planning for the terminal 4.So here in malaysia we bikering about the Low Cost Terminal

[Ryan Soh 3]

Sigh, despite my objections to the Labu-Labi project I feel TF's pain. I hope MAHB will realise someday that by making things difficult on the short term by bickering back and forth and presenting one obstacle after another so that MAS can flourish, it will only hurt KLIA's status in the long run.

[Nik H. 3]

Sigh, despite my objections to the Labu-Labi project I feel TF's pain. I hope MAHB will realise someday that by making things difficult on the short term by bickering back and forth and presenting one obstacle after another so that MAS can flourish, it will only hurt KLIA's status in the long run.

 

Ryan,

 

Are you saying that MAHB is making things difficult for Air Asia for MH's benefit? Or did I read you wrong?

 

 

[Mohd. Helmi 0]

Ryan,

 

Are you saying that MAHB is making things difficult for Air Asia for MH's benefit? Or did I read you wrong?

 

Funny enough that's how i read it too and i agree with it. If MAHB really wanted it, we would have had a permanent LCCT by now. How long has it been since Air Asia moved to KLIA from Subang? I too feel for Dato Tony. Dragging their feet, being difficult with AK surely only benefits MH, no one else. So what is the real reason behind MAHB taking so long in providing permanent proper facilities for AK in line with AK's needs? Sheer incompetence??

 

 

[Ryan Soh 3]

Ryan,

 

Are you saying that MAHB is making things difficult for Air Asia for MH's benefit? Or did I read you wrong?

Hmm... how should I put this without offending anyone? I will just do so with the acknowledgement that I will be flamed for my views so feel free to do so, no hard feelings.

 

The time has come for MAHB to work on consolidating KLIA's resources into it's confines. The "master plan" was build around making KLIA into a HUB. It doesn't matter when the masterplan was created, the plan needs to be tweaked time and time again to be moulded to fit the present climate moving forward. Time is of the essence here and if you do not capitalise on the wave, you miss it - which is my sore point with MAHB.

 

You have a bunch of GLCs dealing with a gung-ho privately run company / conglomerate. Needless to say there WILL be a clash of cultures. So yes, I am grouping all the GLCs into one camp while AK is in the opposite side of the court.

 

There are TONS of room to build a permanent terminal for AK and if this one has a ERL rail line obstructing, go elsewhere! If this one too swampy, GO ELSEWHERE! Heck is their expansion plan ONLY confined to these 2 areas? If you look at the so called master-plan for the airport, I hardly think so.

 

 

And even in the present KLIA without taking into consideration of the furture master plan, there is so much more room...

 

 

So to me, with every reason MAHB releases to the press, it is a shot in their own foot because it simply shows everyone else that they are ill-prepared to be flexible. If this way doesn't work, there is ALWAYS another way. ALL WAYS AND AVENUES have to be exhausted until you can be sure (and doubly sure) there is no way out then you say "no". If their current reaction leaves many wondering "why didn't they think of that when they first build?" it simply means that is not a good answer. I will not accept because if this was me in their shoes, I would have been terminated immediately with 24hrs notice.

 

With MAS in their present state, AK is set to take over them in terms of passenger numbers (maybe they already have). The cycle of people movement is very high for the latter and more passengers means more money collected via airport taxes. Does MAHB REALLY want to lose a customer like that? If one can capitalise on AK's growth (despite it being an LCC) and bring in more business for KLIA, isn't that a wonderful thing? It is all about $$, $$ and more $$$$$$$$$$. Yes sure we have heard the sceptics who can always say AK is dreaming, only in their dreams they will take over MH and eventually SQ in terms of pax carried. Yes... everyone told TF he was a dreamer too when he bought Air Asia from Hi-COM.

 

MAHB has a cash cow in their hands but they cannot / don't want to handle it. For now, it might seem that they scored a victory, but in the long run only KLIA will be the one to lose out because you have MILES of dusty cul de sac unused and being rolled over by the occasional MH 737 while Labu nearby churns and drums. Is that what we really want? TF has been trying to sugar coat the situation by saying that KLIA is not a hub, but the hub is KL. But we all know what he really means by that - KLIA is too stifling.

 

So my view stands. Labu should not be built. All the GLCs should stop sheltering one another and get real. Compete on level playing field and only then can we see the fruits of labour. Long term... LONG TERM!

[Izanee 0]

To be honest...i don't feel for TF's pain. He is making a big drama over nothing. Fine, he and MAHB may not get along but look at what he has done in the past. You give him a bit, he asks more even more. That's been on going for a good few years now.

He will NEVER be satisfied with what he has got. Firstly Subang, then LCCT, then Singapore and now Labu-Labi Fernandez international.

 

stop demanding and just work with what you've got.

 

 

 

[Ryan Soh 3]

To be honest...i don't feel for TF's pain. He is making a big drama over nothing. Fine, he and MAHB may not get along but look at what he has done in the past. You give him a bit, he asks more even more. That's been on going for a good few years now.

He will NEVER be satisfied with what he has got. Firstly Subang, then LCCT, then Singapore and now Labu-Labi Fernandez international.

 

stop demanding and just work with what you've got.

tsk tsk tsk.... If this is the kind of mentality MAHB is dishing out, no wonder KLIA is what it is today...

[Naim 6]

...

He will NEVER be satisfied with what he has got. Firstly Subang, then LCCT, then Singapore and now Labu-Labi Fernandez international.

 

stop demanding and just work with what you've got.

 

He's a businessman. and that's expected of him. What about the many, many thousands who have benefited from his business? Like ppl from the east coast, from Sabah & Sarawak, from elsewhere. Imagine 10 flights a day KUL/BKI, KUL/KCH. 5 a day KUL/KBR. All affordable. And the many Indo workers returning to their homes in Sumatra and Jawa. The many Malaysian students able to return home for weekends. You may bash Tony for his shortcomings, but you need to be pragmatic too - he has also done good things for the commonfolks. Come to the LCCT, meet the typical AK guests, and try to put your feet inside their shoes. They don't care about rhetorics and ideals and masterplans and hubs, all they only care are the cheap fares Tony is offering them. My flights to Krabi and Chiangmai were always full of matsallehs, praising AK for the cheap trips they are making. How Tony can afford to give such cheap fares away, nobody cares as long as they are cheap, even if Tony has his own airport.

[Mohd Azizul Ramli 2]

You may bash Tony for his shortcomings, but you need to be pragmatic too - he has also done good things for the commonfolks. Come to the LCCT, meet the typical AK guests, and try to put your feet inside their shoes. They don't care about rhetorics and ideals and masterplans and hubs, all they only care are the cheap fares Tony is offering them.

Because these people don't care that's why only the opinion of those who care that matters. Building an airport is not a makeshift pasar malam business. Izanee has made his point clear in the letter he sent to NST and we all should applaud his contribution. The opinion of those who don't fly AirAsia should be taken into account as well.

 

Malaysia need to have a strong gateway and since our flip flop government is set to backtrack from their earlier decision on the approval of the proposed Labu Airport, KUL is yet again, being given a new lease of life. The only good thing I can see from all this drama is that AirAsia has shown how bad MAHB and the government itself in addressing this matter. And like what AirAsia had done to MH, AirAsia will again being the main catapult that may change how MAHB works in the future. Hopefully, the hub that we (legacy and LCC flyers alike) are all being dreaming of will be realised.

 

He's a businessman. and that's expected of him... My flights to Krabi and Chiangmai were always full of matsallehs, praising AK for the cheap trips they are making. How Tony can afford to give such cheap fares away, nobody cares as long as they are cheap, even if Tony has his own airport.

He is the man who cheated all Malaysians too especially those in Borneo with the rural air service in the disguise of FAX in order to obtain AOC for AirAsia X and cannibalised the entire PMB's fleet of F50s and DHC Twin Otters during the process. But as you said, no body cares right?

[Syed A Ridhwan 0]

Labu airport is as good as off

 

PUTRAJAYA, Fri:

 

The proposed new airport in Labu by AirAsia Berhad is as good as off. The decision was conveyed to AirAsia executives when they met the Deputy Prime Minister this afternoon. A source said the Government felt that AirAsia would not be able to raise the funds to develop the new airport.

Instead, Malaysia Airports Holding Berhad will build a new terminal near the Kuala Lumpur International Airport where they will work closely with AirAsia, a source said. AirAsia’s inputs in the building of the new terminal will also be taken into consideration,” the source said.

 

The Cabinet is expected to formalize the decision in the next few weeks.

 

Earlier, AirAsia chief executive officer Datuk Tony Fernandes briefed Datuk Seri Najib Razak and Transport Minister Datuk Seri Ong Tee Keat on the proposed new airport to cater to low-cost carrier.

 

Fernandes presented a detailed report on KLIA-East and plans to make Kuala Lumpur the regional hub for low-cost carriers. Representatives of the Malaysia Airports Holding Berhad, Transport Ministry, Finance Ministry and Economic Planning Unit also attended the one-hour briefing.

In an immeidate reaction, Fernandes said: We were happy with the meeting. This is a big step for the development of AirAsia."

 

Clicky!

[Radzi 2]

And from another site.....

 

KLIA East called off

KUALA LUMPUR, Jan 30 — It is confirmed. The controversial KLIA East project is off, stillborn at the drawing board because it had become too costly politically for the administration.

 

But it was not all bad news for Air Asia, the region’s largest budget carrier and the promoter of the idea to build the RM1.6 billion airport in Labu. The carrier managed to extract some concessions from the government, namely that Malaysia Airport Holdings Berhad (MAHB) build a new terminal by 2011 and consult Air Asia on the design and other issues pertaining to the operations of the facility.

 

Several government officials told The Malaysian Insider that MAHB was told to lower charges for the budget carrier, complete the construction on time and make the new terminal an energy efficient complex.

 

Today’s meeting was chaired by Finance Minister Datuk Seri Najib Razak and attended by Air Asia’s Datuk Seri Tony Fernandes, officials from the Ministry of Finance, Economic Planning Unit and MAHB.

 

When contacted, Fernandes said: “It was a positive meeting and we got a good hearing from everyone.’’ He declined to go into the specifics of the meeting.

 

Najib called for today’s meeting as a result of the firestorm of criticisms which followed an announcement last month that the government had approved a plan by Air Asia to build a new LCCT in Labu. Critics assailed the government saying that this decision would hurt KLIA’s ambitions of becoming a regional hub. They also argued that if a new facility had to be built, it should be built within KLIA.

 

Air Asia countered by saying that MAHB was unable to build a new LCCT by 2011 to cater for its growth. It pointed out that MAHB was only able to build a new LCCT by 2014.

 

The government fearing a political backlash and unwilling to test its popularity in this more challenging political climate began sending out feelers a couple of weeks ago that it was looking for a compromise solution.

 

It received a helping hand from Sime Darby Berhad, the government-linked company which informed the government that it was only willing to sell a tract of land in Labu to Air Asia and was not providing any financing for the project.

 

This move threw into doubt whether Air Asia could raise the financing for the RM1.6 billion terminal and the RM700 million connectivity infrastructure.

 

Government officials, who were briefed about today’s meeting, said that MAHB and Air Asia will have to come back in two weeks with firm plans for the new LCCT.

 

“The DPM played the role of an honest broker. He did not take sides but wanted to make sure that national interest was served. This could only happen if the new LCCT was built in KLIA but Air Asia’s legitimate interests and concerns were addressed,” a government official told The Malaysian Insider.

 

It may have been a happy ending for all parties but this episode certainly raised some serious questions over decision-making in the government.

 

And begs the question on why MAHB and Air Asia could not be forced to the negotiating table earlier.

 

Hopefully this one will be the final decision.

 

YES to another LCC TERMINAL, NO to another nearby AIRPORT.

Edited January 30, 2009 by Radzi

[Fitri Shukri 0]

This will not be the end of the debate/issue.